Do you have any Form 1099s to file?
Form 1099-MISC is the primary third-party notification for non-employee income. If a business pays someone, who is not the business’s employee, $600 or more forservices provided during the year, a Form 1099-MISC must be filed with the IRS by February 29, 2016 and a copy supplied to the recipient by February 1, 2016. Generally, 1099-MISC reporting is not required if the recipient is a corporation (except for attorneys), tax-exempt organization or government entity.
Common Types of Payments to be Reported:
1. Contract Labor
2. Professional Services to attorneys, accountants, financial advisers, etc.
3. Rent
4. Payments for Labor for Repairs
Why should you file? Penalties!
A payer who, without reasonable cause, fails to timely file a required information return is subject to penalties for each return.
How will the IRS know if I am required to file?
There are questions on the tax returns for businesses (including sole-proprietors and rental schedules) which specifically ask if you had any payments subject to filing a Form 1099-MISC.
Click HERE for more information.
Contact our office today if you need assistance in filing the proper returns!